State Street, Blackstone Join to Offer New Loan ETF

By

Katy Burne

Updated April 4, 2013 11:28 a.m. ET

Two established Wall Street players are teaming up to launch a rare exchange-traded fund for high-yield loans as demand for such investments rises in anticipation of rising interest rates in coming years.

The fund launched Thursday is the first to be offered jointly by ETF provider State Street Global Advisors and Blackstone Group's credit unit GSO Capital Partners. It is also the first actively managed ETF with exposure to senior loans. Being actively managed means it aims to beat the performance of the overall loan...